Global South nations prioritise debt servicing over education spending

A recent opinion piece published by Al Jazeera on 25 July 2026 argues that the global financial order is compelling nations in the Global South to prioritise debt servicing over education spending. Citing data from UNESCO, the article notes that 113 countries, with a combined population of 6.1 billion, now allocate more resources to servicing sovereign debt than to educating their populations. In low-income nations, debt payments are nearly four times education expenditure, while in 18 heavily indebted countries, this ratio rises to at least five to one.

The World Bank reports that developing countries experienced a net debt outflow of $741 billion to external creditors between 2022 and 2024, marking the largest such outflow in at least 50 years. In 2024 alone, low and middle-income countries paid a record $415 billion in interest on their debts. The article contends that this financial hierarchy undermines social rights, noting that creditors possess enforceable claims on government revenues, whereas the right to education lacks comparable enforcement mechanisms or financial penalties for non-compliance.

While initiatives such as debt-for-education swaps offer limited relief, the analysis suggests they are insufficient to address the broader crisis. Specific examples include a 2023 agreement with France for Ivory Coast, a German agreement with Egypt, and an earlier Spain-Peru programme. However, the author argues that these swaps typically cover only a small fraction of outstanding debt, depend on creditor consent, and leave untouched the principle that creditors are entitled to repayment unless they voluntarily concede otherwise.

The situation is further exacerbated by a projected decline in international assistance for education, which UNESCO estimates could fall by up to 30 percent between 2023 and 2027. The article argues that domestic resource mobilisation and austerity measures are inadequate solutions, as additional revenues are often diverted to high-interest debts or eroded by currency depreciation, while wage bill freezes prevent governments from addressing teacher shortages.

To resolve these structural imbalances, the author calls for large-scale debt cancellation, automatic payment suspensions during emergencies, and cheaper concessional financing. A key recommendation is the establishment of a binding United Nations framework for sovereign debt restructuring, designed to prevent holdout creditors from obstructing negotiations and to ensure that debt repayment does not come at the cost of dismantling essential social institutions.